The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print operations, television, radio broadcasting,
digital and online services. The Standard Group is recognized as a leading
multi-media house in Kenya with a key influence in matters of national and
international interest.
These numbers reveal businesses are still cautionary about what the future holds even as the index shows optimism is low, with the future output index below the 50.0 mark.
Stanbic says the Future Output Index posted one of its lowest readings since the survey began 11 years ago, although it was slightly compared to December.
“Roughly six per cent of companies are hopeful of expanding their output over the next 12 months, with comments often revolving around new products and services and increased marketing activity,” says Stanbic in the index.
The index notes falling staff numbers in the period and delays in payments for some firms despite businesses purchasing more inputs.
The purchase of more inputs is associated with backlogs in December, which businesses are still trying to deliver, higher selling prices and the uncertainty of the future.
“A number of firms chose to stock more inputs due to higher sales and concerns about future material availability according to qualitative reports,” says Stanbic Bank.
Christopher Legilisho, an economist at Standard Bank, noted the weaker pace of the Kenyan PMI, which he said reflects the resilience of the private sector. Firms, however, reported increases in both output and new orders, implying higher sales, more marketing, client referrals, and lower inflationary pressures.
“Firms were able to increase stocks purchased and inventories held — to cover higher sales as well as the future likelihood of difficulty in finding materials,” said Mr Legilisho.
Stanbic Bank says growth momentum regarding output orders and new orders faded in the period.
“The latest data signalled that January’s rise in output was the weakest recorded in the current four-month expansionary sequence and only marginal. Sales growth also eased to its slowest since last October,” says the bank of the index.
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The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print operations, television, radio broadcasting,
digital and online services. The Standard Group is recognized as a leading
multi-media house in Kenya with a key influence in matters of national and
international interest.
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